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The Mystery of Money or how I learned to stop worrying about debt and deficits.

May 15, 2015 — John Kelly

When Leigh Sales asked Bill Shorten on Thursday night how he was going to pay for the promises he made in his budget reply speech, Bill dodged the question. Well, why shouldn’t he? Politicians do that. But the answer he should have given was: The same way governments pay for anything. They credit our bank accounts with money the Reserve Bank creates out of thin air.

If the broader Australian community understood the principal of the three sectoral balances, they would be immune to the lamentable language used by politicians, journalists, business commentators and television anchor men and women who demonstrate daily how little they know about money.